ICYMI - PBOC says lending rates will fall further
The People's Bank of China concluded a quarterly meeting Monday evening (Asia time).
The statement from the Bank that followed contained the usual soothing words along the lines of:
- China will make its monetary policy flexible, targeted and appropriate
- will keep interbank liquidity reasonable
- internal and external environment facing the Chinese economy still has risks
- China will seek greater international economic policy coordination
- will combat external shocks to support growth
- China will increase flexibility of the yuan exchange rate, it will be kept stable within a reasonable and balanced range
Of more interest was the bank noted that recent reforms in deposits and lending will help drive a further decline in real lending rates.
Offshore yuan has weakened from its highs the past few weeks, the PBOC slowed then has halted (at least for now) its rally - taking advantage of the heightened speculation of Fed tapering to come.